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  • Share your best practices!

    Hi everyone,

    We here at Philanthropy University recognize that you guys, our learners, are experts in what you do. For that reason, we want to to hear your best practices for common challenges you face in your work.

    Make sure to click the “vote” button on others’ responses that you agree with or are helpful to you!

    • What are your organization's best practices for financial management?
  • Financial projections in the business plan:

    • Be clear about what drives the business.

    • To have facts backing up our assumption.

    • Be optimistic, but also realistic

    • Pay attention to investors' goals and interest.

    • Choose the right level of detail.

    • Make projections for 3 to 5 years.

    • Cash plan on a monthly basis.

    A
    2 Replies
  • @unia said in Share your best practices!:

    Financial projections in the business plan:

    • Be clear about what drives the business.

    • To have facts backing up our assumption.

    • Be optimistic, but also realistic

    • Pay attention to investors' goals and interest.

    • Choose the right level of detail.

    • Make projections for 3 to 5 years.

    • Cash plan on a monthly basis.

    This is awesome @Unia ! Thanks for sharing these. Are there any tools that your organizations use to help with these points that you can recommend, such as the multi-year projections or general accounting?

  • @Jason thanks for your question

    My organisation is guided by Generally Accepted Accounting principles (GAAP) in designing and implementing best practises in Financial management.In particular we use Seven principles that provide a high-level guide for trustees and senior managers, to help them make sure that their organisation is using funds effectively and that staff are working appropriately.They also provide a useful checklist when deciding whether to fund other NGOs

    The seven principles are

    1. STEWARDSHIP
      The organisation must take good care of the resources it is entrusted with and make sure that they are used for the purpose intended. The board of trustees has overall responsibility for this. In practice, managers achieve it through careful strategic planning, setting up appropriate controls, considering risks, and by setting up systems that work in tune with the two golden rules of NGO field work.

    2. ACCOUNTABILITY
      The organisation must explain how it has used its resources and what it has achieved as a result to all stakeholders, including beneficiaries. All stakeholders have the right to know how their funds and authority have been used. NGOs have an operational, moral and legal duty to explain their decisions and actions, and submit their financial reports to scrutiny

    3. TRANSPARENCY
      The organisation must be open about its work, making information about its activities and plans available to relevant stakeholders. This includes preparing accurate, complete and timely financial reports and making them accessible to stakeholders, including beneficiaries. If an organisation is not transparent, then it may give the impression of having something to hide.

    4. INTEGRITY
      On a personal level, individuals in the organisation must operate with honesty and propriety. For example, managers and trustees should lead by example in following procedures and by declaring any personal interests that might conflict with their official duties. The integrity of financial reports depends on the accuracy and completeness of financial records

    5. VIABILITY
      Expenditure must be kept in balance with incoming funds, both at the operational and the strategic levels. Viability is a measure of the NGO's financial continuity and security. The trustees and managers should prepare a financing strategy to show how the NGO will meet all of its financial obligations and deliver its strategic plan.

    6. ACCOUNTING STANDARDS
      The system for keeping financial records and documentation must observe internationally accepted accounting standards and principles. Any accountant from anywhere around the world should be able to understand the organisation’s system for keeping financial records.

    7. CONSISTENCY
      The organisation's financial policies and systems must be consistent over time. This promotes efficient operations and transparency, especially in financial reporting. While systems may need to be adapted to changing needs, unnecessary changes should be .

    These core principles are key in designing policies, operational framework of the organisation and in development of internal controls tools.They are also useful in determining the accounting system to use for book keeping.

  • @Unia said in Share your best practices!:

    Financial projections in the business plan:

    • Be clear about what drives the business.

    • To have facts backing up our assumption.

    • Be optimistic, but also realistic

    • Pay attention to investors' goals and interest.

    • Choose the right level of detail.

    • Make projections for 3 to 5 years.

    • Cash plan on a monthly basis.

    Wow well articulated

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